Brocade closes $973M McData acquisition |
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Mon, 29 Jan 2007 15:15
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SAN JOSE, Calif. (AFX) - Network equipment maker Brocade Communications Systems Inc. said Monday it completed its $973 million acquisition of McData Corp., a maker of routers and switches used in networking applications.Brocade expects the purchase to add to earnings, excluding certain expenses and charges, by the 2008 first quarter.Under the terms of the deal, struck in August 2006, McData class A and class B shares were converted into the right to receive .75 shares of Brocade common stock.In conjunction with the close, Brocade approved a $200 million stock buyback plan, adding to the $52.7 million left over from a previous $100 million program. Under that plan, the company bought back 7.9 million shares for about $47.3 million as of the third quarter 2006.Brocade does not expect to begin buying back stock under the plan until it reports first-quarter results on Feb. 26.Shares of Brocade were trading at $8.35 in the premarket session, up 5 cents from Friday's closing price of $8.30 on the Nasdaq.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Shareholders OK Brocade's McData buy 